Sony Announces Net Loss Of $390.5 Million In Q1

Sony announced today that they have lost $390.5 million (¥37.1 billion) this quarter.  The losses are blamed on consumers cutting back spending on TV and technology. Sony has also blamed currency rates, specifically a stronger Yen that is causing inflation in Japan and cuts away from revenue overseas.

Sony sales dropped 19.2% from a year earlier.  This quarter’s sales were $16.8 billion (¥1.60 trillion).  Operating loss was $267.77 million (¥25.7 billion). Demand for products such as Bravia TVs, Handycam video camcorders, and cyber-shot digital cameras, and Walkman music players have dropped.  There has not been much demand for Sony’s consoles compared to their competitors either.

Sony sold about 1.1 million PlayStation 3 consoles and 1.3 million PlayStation Portables in the quarter.  During the same quarter last year, Sony sold 1.6 million PS3 consoles and 3.7 million PSPs.

From a positive standpoint, Sony motion pictures saw a 6.5% increase in quarterly sales.  The movie Angels & Demons helped trigger the sales increase.

Sony CEO Howard Stringer said that he expects the company to eliminate 16,000 jobs and cut costs in their 57 factories.

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